Stocks close flat as investors turn cautious.

KARACHI -- Stocks closed flat on Monday with the KSE-100 index managing to crawl up by just 16 points to 33,284.

The market seemed in no mood to trade evident by the sluggish volume and value of shares and the range-bound movement of the index between intraday high and low by 48 and 142 points. All three heavyweight sectors - banking, exploration and production and cement - were out of favour with the investors who decided to book profit.

Investors thought it prudent to wait for the three upcoming events; results of the MSCI review scheduled to be announced on 12th; the monetary policy on 15th and a run-up to the FY21 budget.

While the first two could set the tone for the market, the budget was thought to be a non-event with new taxes and fewer incentives, if at all. But the immediate concern on the minds of investors was the impact of COVID19 on the national and international economy. The surge of infections that crossed 30,000 with 667 fatalities spooked them.

The government projection of fiscal deficit...